The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1887-09-04
THE BALTIMORE & OHIO.
The Change Will Benefit the Creditors-Tele-
graph and Other Interests to be Sold

NEW YORK, Sept. 3.-The developments pub
Hshed this morning regarding the Baltimore e
Ohio negotiations were a complete surprise to
the operators in the stock market, but they all
formed decision to buy everything on the list
at the opening of the exchange, and prices
moved up with unprecedented rapdty. The
excitement in the board was intense, and brokers
bid one-half above the previous sales in order to
get stock ahead of their competitors. The prin-
cipal gain was made in Reading, which
at time showed an advance over
Fridays close of SO, and Manhattan recorded q
gain of 81 Toward the end of business tho ex-
element subsidized. and the impression began to
grow that the benefit to accrue from the contract
as overestimated. One OF the heaviest operat-
in the street said, after the closer There is
no benefit to be gained from the settlement
cept that which might accrue to the creditors of
the Baltimore 81 Ohio. They essentially the
parties who have taken the pre-
terred stock and the bonds, and
the floating debt This may have saved the
Baltimore 81 Ohio from going into receivers
hands on account of the floating debt, but that
is all that has been done. Rates cannot be ad-
vanced one hundred per cent, the
when the West Shore settlement was made AS
far as telegraph settlement is concerned, that
is further away now than ever. The Baltimore q
Ohio is in strong hands. and will be in
conjunction with the Pennsylvania and Heading
for the benefit of the latter, and if Gould buys
tuo toleGrdpu system IL Will Ue dt tHo
terms, and there may be fight of years before
G consolidation is made"
Vice president De Castro. of the Commercial
Cable Company, was averse to talking the
matter. He said that Mr.. Mackay still in
San Francisco, and had no intention of coming
TO this city for time. The negotiations
with Mr. Gould had not been renewed. but that
would not affect the land lines. Even though
Mr.. Gould should get the Baltimore & Ohio
telegraph system, the position of the Postal
company would not be weakened, but, instead,
materially strengthened as it would then be the
only opposition line. The stories to the effect
that Mackay had sgnlfed his willing
ness raise the cable rates to
80 or 60 cents per word, provided
Gould furnished the money to pay the rebate
guaranteed by Mackay, he prom ouuced false.
One of the reasons for holding to the forty-cent
rate was that If that rate was established, no
new competition could be organized and live.
while with a sixty-cent rate it IS probable that
new cables would be laid at once and new war
inaugurated. j. Pierrepont Morgan said that
the preliminary contract signed yesterday was
the only one necessary, and that other would
be drawn up. He said that it was the intention
to sell both the telegraph and sleeping car plants
and franchises soon as it could be favorably
accomplished.
BALTIMORE, Sept. 3.-There is but little ex-
element here consequent upon the last deal of
the Baltimore e Ohio Railroad Company. It
has thus far had effect upon the stock, for
which 15I bid the close to-day. 1t is
thought however, that there will be decline,
probably to 100. the par value OF the shares
Little doubt is entertained here that dividend,
in cash or script, will be declared at the October
meeting of the board of directors A very gen
eral impression prevails that the new deal will
be for the best interests ofathe road.